Oil Producers & Consumers In One
There’s nothing wrong with buying the old, established oil and energy ETFs to get exposure to the space. But ETFs like USO and XLE are far from the only choices investors have. In fact, just in the past year, there have been 10 launches of energy-related ETFs. Here we take a closer look at some of those.
|2/28/2018||NYSE Pickens Oil Response ETF||BOON|
|1/18/2018||iPath Series B Bloomberg Energy Subindex Total Return ETN||JJEB|
|12/13/2017||American Energy Independence ETF||USAI|
|9/15/2017||Credit Suisse AxelaTrader 3x Long Brent Crude Oil ETN||UBRT|
|9/15/2017||Credit Suisse AxelaTrader 3x Inverse Brent Crude Oil ETN||DBRT|
|7/20/2017||United States 3X Oil Fund||USOU|
|7/20/2017||United States 3X Short Oil Fund||USOD|
|6/13/2017||Cushing 30 MLP Index ETN||PPLN|
|06/01/2017||Amplify YieldShares Oil Hedged MLP Income ETF||AMLX|
|4/26/2017||Credit Suisse X-Links Crude Oil Shares Covered Call ETN||USOI|
The newest entrant is the NYSE Pickens Oil Response ETF (BOON), launched in February. BOON attempts to differentiate itself by holding not just shares of traditional energy producers, but stocks of companies from other industries that will benefit from growing energy supply and demand—such as large energy consumers and alternative energy companies.
BOON’s unique twist on the energy sector results in unusual holdings, such as vehicle maker Oshkosh, aluminum manufacturer Alcoa, gold miner Newmont Mining, solar company First Solar and conglomerate General Electric.
The inclusion of companies from both the supply and demand side of the oil market may result in a smoother ride for investors when compared with other energy ETFs, according to the issuer. BOON is up 5% since launching on Feb. 28.
Energy Futures Basket
Along with BOON, the only other energy product to launch in 2018 is the iPath Series B Bloomberg Energy Subindex Total Return ETN (JJEB). The ETN tracks an index of futures contracts on five energy commodities: natural gas, Brent, WTI, gasoline and diesel.
JJEB’s unique feature is that it holds futures contracts with two or three months until expiration, slightly longer than the typical front-month-tracking products.
In addition to JJEB, there are five futures-tracking ETPs that launched in the past 12 months, all of them focused on oil. Four of those are triple-leveraged products: the AxelaTrader 3x Long Brent Crude Oil ETN (UBRT), the AxelaTrader 3x Inverse Brent Crude Oil ETN (DBRT), the United States 3x Oil Fund (USOU) and the United States 3x Short Oil Fund (USOD).